The hospitality industry has faced numerous challenges in recent years, many of which brought about detrimental operational changes. Amongst the most recent challenges is the cost of living crisis which has been deterring customers from eating out, compelling many businesses to either downsize or close permanently. Luckily for hospitality businesses, around 60% of consumers are expecting to maintain or even increase their Christmas spend this year, giving the sector hope to for a profitable festive period.
Pubs are in luck
The research shows that families are more likely to go out drinking together during the festive period, as going out for food has decreased in comparison to last year’s results. Coincidentally, traditional pubs lead the way as a prime destination this festive period, with 47% of respondents marking pubs as their number one choice. 18% of respondents will choose a casual/local restaurant and 17% will attend a food-led pub/gastropub. High end restaurants scored only 11%, a sector heavily suffering from the cost of living crisis. The destination respondents voted for the least was Bars, which was only chosen by 6% as their desired location.
Influential advertising is key
Effective marketing techniques have a prevalent impact on consumer’s choice of destination during the festive period. Social media is the biggest motivator according to the survey with 34% of people saying it’s the most influential. Interestingly, in-venue advertising follows closely behind at 30% alongside signs/advertising outside the venue at 29%, making in and out of venue advertising almost as influential as social media.
Alcohol consumption has increased
Alcohol consumption appears to be on a rise this year with 42% of people reporting that they will definitely not take part in Dry January – which is a 20% increase from last year’s results. The number of people that have completely stopped drinking has also reduced from 5% to 3% since last year. The research has identified beer as the most popular beverage of choice during the festive season chosen by 40% of people, which was closely followed by wine at 32%. Cocktails scored 23% and cider and spirit and mixer are drawing at 18%. Offering a diverse range of festive drinks helps customers get into the spirit however, it’s important not to neglect the usual best sellers.
It’s important to focus on the basics
During this year’s research, atmosphere (54%) and quality F&B (51%) were identified as key drivers as choice with price (49%) following closely. Being able to provide all 3 of these factors will increase footfall during the festive period. Interestingly, cleanliness only scored 10%, just barely above safety (6%) and festive promotions (5%) in comparison to previous years during COVID, when it was considered top priority.
Key factors to consider by hospitality businesses for the festive period
- Pubs will be exceptionally busy during the holidays. 60% of families have designated them as their top choice for celebrating, and therefore they need to be prepared for the increased footfall.
- There has been a shift of attitude towards a post celebration detox. Fewer people expect to participate in Dry January, therefore leading to an increase in alcohol consumption.
- Beer has been chosen as the most popular alcoholic beverage and therefore will likely be a best seller during the festive season. With a robust stock management system like TouchStock, you can ensure that you never run out of your best selling items.
- There has been a slight decrease in the demand for meat free options however, many customers have adventurous tastes. Solutions such as PocketTouch can send concise orders and messages to the TouchKitchen digital display, ultimately reducing mistakes and meeting customer demands.
- Social media and in venue advertising is most effective to entice and engage customers. Having a strong social media presence, introducing visually appealing Digital Signage and using SelfService kiosk screensavers effectively, provides your business with multiple marketing tools which your business can capitalise in order to reach maximum capacity.
